CHRYSLER TURBINE CAR- Chrysler Corp. has delivered the first two of the 50 turbine powered cars that will be tested by the public during the next two years. AUTOMOTIVE FLEET has learned that none of the cars will be tested by fleet users as previously reported. Chrysler executives are more interested in "normal" driver reactions and market potential than in heavy-duty fleet testing.
ACQUISITION, EXPANSIONS- Hertz Corp. has acquired Meyer Bros. Parking System Inc., New York based firm operating more than 150 parking locations in major cities in the U.S., Puerto Rico and Great Britain. Meyers Bros, said to park more than 20,000,000 cars annually, anticipates 1963 revenues in excess of $7,500,000...Avis Inc. has sold its San Francisco sightseeing and limousine services to Greyhound Corp for $1,2000,000 and its Seattle limousine and sightseeing services to Gray Line Tours Inc. for $360,000... Luby Leasing Inc has launched a general equipment leasing operation...Service Rent-a-Car Inc. is the newest car rental in the highly-competitive New York area. The firm specializes in Rambler cars.
SALES, EARNINGS- Avis Inc. reported earnings of $1,265,374, equal to 62% cents per share, for the fiscal year ended Aug.31 compared with a loss of $ 3,258,879 a year earlier. Revenues rose 11 per cent to a record $37,733,127 from a $33,900,091 in the previous year. Revenues from car rental operations were up 17 per cent to $21,350,000. Leasing revenues scored a 13 per cent gain... Lease Plan International Corp. reported record revenues and earnings for the nine months ended Sept. 30. Revenues amounted to $27,020,004, up from the $22,133,488 a year earlier. Nine month earnings climbed to $828,737, equal to $1.24 per share, from $659,216, or 99 cents per share in the previous nine months...Peterson, Howell & Heather Inc. earned a record $272,107 for the first six months of its fiscal year, up from the $250,732 reported a year earlier. The company had 77,030 pieces of equipment out on lease on Oct. 31, an increase of 4,200 over a year earlier...Berman Leasing Co. reported record revenues and earnings for the first fiscal quarter ended Sept.30. Earnings rose to $532,325 equal to 48 cents per share from $441,746, or 40 cent per share in the same quarter last year. Revenues were up 48 per cent $10,278,664 from $6,966,297.
CAR RECONDITIONING- The auto industry is paying more attention to car reconditioning. Last month Chrysler Corp. established a reconditioning center in Lynbrook, Long Island to handle cars coming out of service under the Chrysler leasing program. Now, Ford Motor Co. has opened a reconditioning center in Chicago. The Ford Chicago facility is the first in a series of centers which Ford expects to open in major cities across the country. The Ford operation is open to leasing companies and other qualified fleets. The basic reason behind the auto industry's emphasis on reconditioning: a clean car brings more money, is easier to sell.
WARRANTIES EXTENDED- Watch for all major tire companies to extend the road hazard, workmanship and material warranty. Goodyear Tire & Rubber Co. and General Tire Co. were the first two companies to offer a lifetime road hazard guarantee. Competitors are expected to follow suit...Pure Oil Co. is offering a five year or 50,000 mile warranty on major engine, rear axle and transmission components provided Pure products are used exclusively. The warranty covers the replacement or repair of listed parts that are damaged because of any defects in the quality of the products.
BALANCED FLEET- The Iowa Executive Council has gone on record as favoring balanced car fleets because the state loses money on resale values if the fleet gets out of balance. Accordingly, the council has recommended that state cars be divided evenly between Chevrolet, Dodge, Ford and Plymouth. Harvey E. Montgomery, state car dispatcher has been told to specify the number of cars each make to be purchased rather than rely on open bidding. The low bid among dealers from each make would be accepted. The rule does not apply to the Iowa Highway Patrol.
SHORT TAKES-Avis Inc. and Eastern Air Lines have launched a joint venture under which passengers on Eastern's air shuttle service will be assured an Avis car upon arrival at Washington D.C. or Boston without prior reservation...Hertz has expanded its off-season European package rate to 21 days to $99...Hallicrafters Inc. is now leasing two-way radio units. The program is being handled through National Acceptance Co...
FLEET SAFETY WINNERS- Winners in the National Safety Council's fleet safety program include U.S. Post Office Department, Memphis, Tenn., Artis M. McNair, regional safety officer; U.S. Atomic Energy Commission Patrol, Oak Ridge, Tenn., W.A. Gorder, security inspector; General Foods Corp., Hoboken, N.J., F. R. McKenzie; U.S. Post Office Department, Denver, Colo., Compton, Cali., L.W. Kinison, safety representative; and Shell Chemical Co., Denver, Colo. The winner in the division sponsored by the National Assn. of Fleet Administrators was the Preston Oil Co., Columbia Gas System Inc., Columbus Ohio. The awards were bases on the fleet's safety performance from July, 1962 through June, 1963. All accidents were counted in the contest except those occurring when a company vehicles was properly parked. More than 2,522 fleets competed in the contest, operating 296,464 vehicles and traveling 6,597,414,000 miles.
TAX NOTES- A new law requiring auto leasing firms to pay a 2 per cent sales tax when buying new cars has been upheld by a Florida circuit court judge. Judge Hugh Taylor ruled that the sales tax applies even though a 3 per cent sales tax is collected on rentals. The suit had been brought by the Florida unit of the Car and Truck Rental and Leasing Assn.
